diff --git a/plugins/org.eclipse.embedcdt.managedbuild.cross.arm.core/src/org/eclipse/embedcdt/managedbuild/cross/arm/core/EnvironmentVariableSupplier.java b/plugins/org.eclipse.embedcdt.managedbuild.cross.arm.core/src/org/eclipse/embedcdt/managedbuild/cross/arm/core/EnvironmentVariableSupplier.java
index 222d59f43..f648aa8a8 100644
--- a/plugins/org.eclipse.embedcdt.managedbuild.cross.arm.core/src/org/eclipse/embedcdt/managedbuild/cross/arm/core/EnvironmentVariableSupplier.java
+++ b/plugins/org.eclipse.embedcdt.managedbuild.cross.arm.core/src/org/eclipse/embedcdt/managedbuild/cross/arm/core/EnvironmentVariableSupplier.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2009, 2013 Wind River Systems, Inc. and others.
+ * Copyright (c) 2009, 2023 Wind River Systems, Inc. and others.
  *
  * This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License 2.0
@@ -16,6 +16,10 @@
 package org.eclipse.embedcdt.managedbuild.cross.arm.core;
 
 import java.io.File;
+import java.util.ArrayList;
+import java.util.List;
+import java.util.function.Predicate;
+import java.util.stream.Collectors;
 
 import org.eclipse.cdt.core.cdtvariables.CdtVariableException;
 import org.eclipse.cdt.managedbuilder.core.IConfiguration;
@@ -27,9 +31,7 @@
 import org.eclipse.cdt.managedbuilder.envvar.IEnvironmentVariableProvider;
 import org.eclipse.cdt.managedbuilder.macros.IBuildMacroProvider;
 import org.eclipse.core.resources.IProject;
-import org.eclipse.core.runtime.IPath;
 import org.eclipse.core.runtime.Platform;
-import org.eclipse.embedcdt.core.EclipseUtils;
 import org.eclipse.embedcdt.internal.managedbuild.cross.arm.core.Activator;
 import org.eclipse.embedcdt.managedbuild.cross.core.preferences.PersistentPreferences;
 
@@ -74,9 +76,9 @@ private static class PathEnvironmentVariable implements IBuildEnvironmentVariabl
 
 		public static String name = "PATH"; //$NON-NLS-1$
 
-		private File path;
+		private String path;
 
-		private PathEnvironmentVariable(File path) {
+		private PathEnvironmentVariable(String path) {
 			// System.out.println("cpath=" + path);
 			this.path = path;
 		}
@@ -88,12 +90,10 @@ public static PathEnvironmentVariable create(IConfiguration configuration) {
 
 			Boolean preferXpacksBin = Option.getOptionBooleanValue(configuration, Option.OPTION_PREFER_XPACKS_BIN);
 
-			String path = "";
+			List<String> path = new ArrayList<>();
 			if (preferXpacksBin) {
-				IPath projectPath = project.getWorkspace().getRoot().getLocation().append(project.getFullPath());
-				IPath xpackBinPath = projectPath.append("xpacks").append(".bin");
-
-				path = xpackBinPath.toOSString();
+				String xpackBinPath = project.getFolder("xpacks").getFolder(".bin").getLocation().toOSString();
+				path.add(xpackBinPath);
 			}
 
 			// Get the build tools path from the common store.
@@ -109,14 +109,8 @@ public static PathEnvironmentVariable create(IConfiguration configuration) {
 				buildToolsPath = deprecatedPersistentPreferences.getBuildToolsPath(project);
 			}
 
-			if (path.isEmpty()) {
-				path = buildToolsPath;
-			} else {
-				if (!buildToolsPath.isEmpty()) {
-					// Concatenate build tools path with toolchain path.
-					path += EclipseUtils.getPathSeparator();
-					path += buildToolsPath;
-				}
+			if (!buildToolsPath.isEmpty()) {
+				path.add(buildToolsPath);
 			}
 
 			IOption optionId;
@@ -139,34 +133,28 @@ public static PathEnvironmentVariable create(IConfiguration configuration) {
 				toolchainPath = deprecatedPersistentPreferences.getToolchainPath(toolchainId, toolchainName, project);
 			}
 
-			if (path.isEmpty()) {
-				path = toolchainPath;
-			} else {
-				if (!toolchainPath.isEmpty()) {
-					// Concatenate build tools path with toolchain path.
-					path += EclipseUtils.getPathSeparator();
-					path += toolchainPath;
-				}
+			if (!toolchainPath.isEmpty()) {
+				path.add(toolchainPath);
 			}
 
-			if (!path.isEmpty()) {
+			if (!path.isEmpty())
+
+			{
 				// if present, substitute macros
-				if (path.indexOf("${") >= 0) {
-					path = resolveMacros(path, configuration);
-				}
+				String pathVar = path.stream().map(p -> {
+					if (p.indexOf("${") >= 0) {
+						p = resolveMacros(p, configuration);
+					}
+					return p;
+				}).filter(Predicate.not(String::isBlank)).collect(Collectors.joining(File.pathSeparator));
 
-				File sysroot = new File(path);
-				// File bin = new File(sysroot, "bin"); //$NON-NLS-1$
-				// if (bin.isDirectory()) {
-				// sysroot = bin;
-				// }
 				if (DEBUG_PATH) {
 					if (Activator.getInstance().isDebugging()) {
-						System.out.println("arm.PathEnvironmentVariable.create() PATH=\"" + sysroot + "\" cfg="
+						System.out.println("arm.PathEnvironmentVariable.create() PATH=\"" + path + "\" cfg="
 								+ configuration + " prj=" + configuration.getManagedProject().getOwner().getName());
 					}
 				}
-				return new PathEnvironmentVariable(sysroot);
+				return new PathEnvironmentVariable(pathVar);
 			}
 
 			if (Activator.getInstance().isDebugging()) {
@@ -216,7 +204,7 @@ public int getOperation() {
 
 		@Override
 		public String getValue() {
-			return path.getAbsolutePath();
+			return path;
 		}
 
 	}